JP Housing Authority fights back in letter to parish

Attorney: Audit 'repeatedly misstates both federal and state law'

The Jefferson Parish Housing Authority holds a meeting in Council Chambers in this December 2010 photo.

SOURCE: WDSU

JP Housing Authority fights back in letter to parish

Attorney: Audit 'repeatedly misstates both federal and state law'

Updated: 2:01 PM CDT Aug 3, 2012

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UPDATE -The Jefferson Parish Housing Authority has called a special meeting for Tuesday at 6 p.m. at the Westbank Council Chamber to discuss the findings of a recent federal audit. The meeting will take place one day before the Jefferson Parish Council is called to order for its next session.

NEW ORLEANS - An attorney representing the Jefferson Parish Housing Authority accuses federal auditors of misstating federal and state law, a letter obtained by the WDSU I-Team shows.

The two-page letter, dated Aug. 2, was sent to Jefferson Parish Attorney Debra Foshee. In it, attorney Thomas Flanagan, representing the housing agency, describes a recent audit by the Department of Housing and Urban Development as incomplete.

"(T)he audit report is not a final document accepted by HUD," the letter notes. "Under established procedures, the Authority envisions a meeting with local HUD officials, who are most knowledgeable about the Authority, to discuss the audit. Following that, these officials will decide whether to accept all, some, or none of the auditors' conclusions."

As reported earlier this week, the lengthy report from the HUD Office of Inspector General suggests mismanagement at the housing authority, which operates with an annual budget of about $40 million. In response, some parish leaders are seeking the resignation or removal of members of the agency's board.

But the letter to Foshee argues any such action would be premature.

"(I)t is critical to note that the audit does not accuse the Authority or any of its commissioners of fraud, theft, or other criminal wrongdoing," Flanagan wrote. He characterized the issues brought up by the auditors as procedural, and claimed the report "misstates both federal and state law" in regard to the use of public funds by the housing authority.

Flanagan argued that "small per diem payments" to commissioners have been made for 25 years and are permitted by Louisiana law.

"Our efforts to explain these points to the auditors fell on deaf ears," Flanagan said in the letter.

The attorney said members of the Housing Authority board were prepared to answer questions from the parish president and Council.

The letter does not address many of the specific elements in the audit, such as a purported conflict of interest in the authority's issuance of $91,000 in no-bid contracts to a company owned by a Westbank state representative.